13th month pay back on the table |27 August 2022

Ms Bresson flanked by Ms Mohideen (left) and Ms Aumeeruddy during the press conference

The thirteenth month pay which had for two years been struck off the table is to resume this year, with a new performance-based payment modality.

Cabinet on Wednesday approved a new Bill proposing the modality applicable for 2022, to be tabled before the National Assembly for consideration over coming weeks.

Executive director within the Ministry of Employment and Social Affairs, Veronique Bresson, explained yesterday that government has decided that despite some uncertainty, the domestic economy is performing relatively well as compared to 2020 and 2021, thereby meaning that the thirteenth month salary will be paid this year to all eligible employees in Seychelles.

“Cabinet discussed a new payment modality. In past years, it was automatic and every employee benefitted from the full thirteenth month pay, but for 2022, government has decided that this will be done differently. Fifty percent is to be paid automatically, while the other 50 percent is subject to a performance assessment by the employer,” Ms Bresson said.

“The performance-based provision is something that the ministry has been working towards since last year. When we announced the suspension of the thirteenth month pay last year, we also announced that as of 2022, government will effect changes to the benefit, towards a performance-based system,” Ms Bresson noted.

Thirteenth month pay is an extra payment given to employees, and which equates a regular salary, excluding allowances and other monetary benefits. The financial incentive is tax-free, although employers are permitted to make certain deductions permitted by the legislative framework, for instance, for unauthorised absences.

All employees, from both the public and private sector, are to benefit, provided they have been in employment for 12 months, as stipulated by law. The scheme caps at R45,450, meaning those earning above are not eligible, although it is ultimately up to employers to decide.

Non-Seychellois workers are not eligible, and neither are trainees.

“As per the new bill, if an employer does not have in place a performance management system by the time the thirteenth month pay is due in December, they cannot make any deductions on the 50 percent which is performance-based, meaning they will have to pay employees the entire amount,” Ms Bresson added.

In the event of disputes, and unfair performance assessments, employees may access grievance procedures through the ministry, while reported cases on non-payment will result in prosecution, with employers liable to a fine of R20,000.

Employers who do not feel the need to assess staff’s performance and who wish to effect the payment in full are free to do so. Payment is due by December 31, 2022, although employers have up until January 31 to effect the payments to staff.

As from 2023, the whole benefit will be subject to performance assessments, giving business organisations and employers’ adequate time to implement a performance monitoring and assessment system within their respective organisations. To help organisations in implementing such a system, the Enterprise Seychelles Agency (Esa) has been called in to provide support to small businesses, while The Guy Morel Institute (TGMI) is being relied upon to provide training.

All organisations are reminded it is essential that employees are made aware of their personal goals and targets within the organisation, and that they remain informed of their progress over the course of the year, towards ensuring that the process is fair and transparent.

The new provisions are in keeping with government’s mission to improve productivity nationally, added chief secretary of the Public Service Bureau Shella Mohideen.

“We need a fair and objective system so that employees are at the end of the day, given what they deserve, based on productivity. If they have been productive they should be rewarded, but within our workforce we also have unproductive workers, and I do not believe that it is fair that those who are unproductive are continuously rewarded,” she said.

Also present during the press conference was Alda Aumeeruddy, director of Industrial Relations.

Laura Pillay